2021H2 profit increased by 173.22% and 28.5% year-on-year and month-on-month, with a strong upward momentum.
In 2021, the company had an operating income of 5.12 billion Hong Kong dollars, an increase of 27.0 percent over the same period last year, and a profit of 155 million Hong Kong dollars, compared with a loss of 15.371 million Hong Kong dollars in the same period last year. Of this total, 2021H2 realized revenue of HK $2.73 billion, up 117.9% year-on-year and 14.1% month-on-month, and recorded a profit of HK $870 million, an increase of 173.2% and 28.5% respectively, slightly exceeding our previous profit forecast of HK $80 million.
Full orders on hand support the rapid increase in capacity utilization, with an annualized growth rate of 40 per cent in the automotive business. We estimate that the output value of the company's OA and the automotive sector are expected to reach HK $4.3 billion and HK $1.8 billion in 2022, up 16 per cent and 38 per cent respectively over the same period last year. Up to now, the company's auto business orders-on-hand exceed 13 billion, driving the company's capacity utilization rate to increase significantly, and it is expected that the company's capacity will be fully utilized by 2025.
In 2021, the proportion of new energy vehicle structures in the company's automotive business is about 20%. With the continuous optimization of customer structure, the proportion of new energy vehicle structures is expected to increase to 35%, 40%, and business growth is sustained.
The upgrading of OA business model and the increase in the proportion of machine integration have led to the growth of self-developed spare parts business. The business model of OA plate has gradually upgraded from OEM to DEMS. We believe that the new business model of OA plate is expected to continue to inject strong growth vitality into the company in the medium to long term, mainly reflected in the following two aspects: 1) in the product structure, the proportion of machine integration business is expected to be significantly improved. The products are mainly high-end A3 machines and Xinchuang products. 2) some of the company's customers take the initiative to gradually reduce the size of their internal production lines, so that the company gets more modular purchase orders and increases its market share.
The proportion of self-developed parts for customers in the value of a single machine is expected to increase from 35% to 40% Mel 45%.
Maintain a "buy" rating with a target price of HK $3.00
We maintain the expectation that the company's performance will maintain a high growth trend, and its solid and upward logic is expected to be gradually verified with the disclosure of the results. Recently, the company announced the launch of a six-month buyback program of no more than HK $200 million, accounting for about 8% of its equity. The buyback plan demonstrates management's confidence in its own development and is expected to boost market sentiment. We predict that the operating income of the company from 2022 to 2024 will be 61.77 / 83.93 million RMB 110.35 billion, an increase of 20.9% / 31.5% over the same period last year, and the net profit of 3.20 RMB / 712 million will be increased by 106.4% / 64.8% / 34.9% year on year. Give the company 16 times the target PE in 2022, corresponding to the target price of HK $3.00, with room for an increase of 143.23% over the current price, maintaining a "buy" rating.
